You might think skipping the rental insurance is a good idea because it costs money and “nothing that bad could possibly happen.” But it could cost you more than you’d think. A 2016 poll by the Insurance Information Institute found that only 41% of renters have their own insurance policy. But here are a few reasons why it’s important.

It Covers Your Belongings

If a fire, break-in or other incident occurs, that damage or loss of personal items is covered by your insurance policy, not your landlord’s.

It Covers People You Have Over

If someone visits and something happens and they become injured somehow, you can be held liable for that injury, including all the related medical bills. Rental insurance helps to protect you against that liability.

It Covers Things Stolen Outside Your Home

It actually helps cover you in incidents that happen away from your house. For example, if things are stolen from your car, your rental insurance can cover that.

It Might Be Required by Your Landlord

But even if it isn’t, it’s still a good idea.

It Won’t Break the Bank

Rental insurance policies are usually pretty inexpensive. The average rental insurance policy costs less than $16 a month. And it’s worth it if something were to happen.

If you’re wondering if you should get rental insurance, talk to your insurance company and see what the options are.